11 Red Flags Events That Just Happened As We Enter The Pivotal Month Of August 2015

Are you ready for what is coming in August?  All over America, economic, political and social tensions are building, and the next 30 days could turn out to be pivotal.  In July, we saw things start to turn.  As you will read about below, a major six year trendline for the S&P 500 was finally broken this month, Chinese stocks crashed, commodities crashed, and debt problems started erupting all over the planet.  I fully expect that this next month (August) will be a month of transition as we enter an extremely chaotic time in the fall and winter.  Things are unfolding in textbook fashion for another major global financial crisis in the months ahead, and yet most people refuse to see what is happening.  In their blind optimism, they want to believe that things will somehow be different this time.  Well, the coming months will definitely reveal who was right and who was wrong.  The following are 11 red flag events that just happened as we enter the pivotal month of August 2015…

#1 Puerto Rico is going to default on a 58 million dollar debt payment that is due on Saturday.  Even though this has serious implications for the U.S. financial system, Barack Obama has said that there will be no bailout for “America’s Greece”.

#2 As James Bailey has pointed out, the most important trendline for the S&P 500 has finally been broken after holding up for six years.  This is a critical technical signal that will likely motivate a significant number of investors to sell off their holdings in the weeks ahead.

#3 The IMF is indicating that it will not take part in the new Greek debt deal.  As a result, the whole thing may completely fall apart…

Leaked minutes of the fund’s latest board meeting, which took place on Wednesday, showed staff “cannot reach agreement at this stage” on whether to take part in the new €86bn (£60bn) bailout for Greece. The document said there were doubts over the capacity of the Athens Government to implement economic reforms, as well as the over the sustainability of the country’s sovereign debt pile, which is now projected to hit 200 percent of GDP.

The German Chancellor, Angela Merkel, only sanctioned a new Greek deal earlier this month on the condition that the IMF takes part.

#4 Italy is going down the exact same path as Greece, but Italy is going to be a much larger problem for Europe because it has a far, far larger economy.  This week, we learned that youth unemployment in Italy has reached a 38-year high of 44 percent, and Italy’s debt to GDP ratio has now hit 135 percent.

#5 The Canadian economy has officially entered a new recession.  This is something that was not supposed to happen.

#6 The price of oil plummeted close to 20 percentduring the month of July.  It was the worst month for the price of oil that we have seen since October 2008, which just happened to be during the height of the last financial crisis.

#7 Commodities just had their worst month in almost four years.  As I have written about previously, we witnessed a collapse in commodity prices just before the stock market crash of 2008 too.

#8 Thanks to Barack Obama, the U.S. coal industry is imploding, and some of the largest coal producers in the entire country have just announced that they aredeclaring bankruptcy…

On Thursday, Bloomberg reported that the biggest American producer of coking coal, Alpha Natural Resources, could file for bankruptcy as soon as Monday.

Competitor Walter Energy filed for bankruptcy earlier this month, and several others have done the same this year.

#9 For the month of July, the Shanghai Composite Index was down 13.4 percent.  Despite unprecedented government intervention to prop up the market, it was the worst month for Chinese stocks since October 2009.

#10 A major red flag that a recession in the United States is fast approaching is the fact that Exxon Mobile just announced their worst earnings for a single quartersince 2009.  Compared to the same time period one year ago, Exxon Mobile’s earnings were down 51 percent.

#11 Chevron is another oil giant that has seen earnings plunge.  In the second quarter of this year, Chevron’s earnings were down an eye-popping 90 percent from a year ago.

And in this list I didn’t even mention the economic chaos that is happening down in South America.  For full coverage of that, please see my previous article entitled “The South American Financial Crisis Of 2015“.

To a certain extent, I can understand why most Americans are not alarmed about the months ahead.  The relative stability of the past several years has lulled most of us into a false sense of security, and the mainstream media is assuring everyone that everything is going to be just fine and that brighter days are ahead.  At this point, many believe that it is patently absurd to suggest that we could see an economic collapse in 2015.  But of course even though the signs were glaringly apparent, very few of us anticipated the financial crisis of 2008 either.

A few weeks ago, I authored a piece entitled “The Last Days Of ‘Normal Life’ In America“, and I stand by every single word of that article.  I truly believe that the era of debt-fueled prosperity that we have been enjoying for so long is coming to an end, and our standard of living will never again get back to this level.

Just yesterday, I had the chance to go over and stock up on some emergency supplies at a dollar store.  It always astounds me what you can still buy for a dollar.  The combined cost of raw materials, manufacturing, packaging, shipping and retailing most of these items shouldn’t be less than a dollar, but thanks to having the reserve currency of the world we are still able to go to these big box stores and fill up our carts with lots and lots of extremely inexpensive merchandise.

Unfortunately, this massively inflated standard of living is going to come crashing to a halt.  This next financial crisis is going to destroy the system that is currently producing such comfortable lifestyles for the vast majority of us, and that will be an extremely painful experience.

So enjoy this summer for as long as it lasts.  Even though August threatens to be pivotal, it is going to be nothing compared to what will follow.

Fall and winter are coming.

Prepare while there is still time to do so.

Source: http://theeconomiccollapseblog.com/archives/11-red-flag-events-that-just-happened-as-we-enter-the-pivotal-month-of-august-2015

Assessing July welcoming August

Its' already the end of July but unfortunately I can see that things seems to be going downhill for us.

There seems to be growing problems in the country as well as in all parts of the world.

In our case, it has been 1MDB over and over again. And then IGP said writing and sharing about it could became seditious. I got so fed-up with this that I deleted all the 3 articles on the blog which I posted earlier. 

There was the Low Yat incident which I happen to be around there around 8.30pm on that Saturday. 

Then there was the Greece debt bailout called Grexit which ended amicably but many analysts are saying will come back in 6 - 12 months time.

There is the China stock correction which has not ended yet. I told myself that the correction has still got legs to go on for some time. 

Then there were the sudden drop in the prices of all types of either hard or soft commodities - gold, oil, copper, silver, corn, wheat, etc. 

Some crash experts correctly pointed out that in the past few rounds, the drop in commodities preceded a stock market correction.

The super strong USD is another phenomenon in July especially when it broke the 3.80 level. 

This level is important because this is the number where the ringgit was pegged in 1998 during the Asian Financial Crisis. 

Does it mean we are in crisis? I hope not.

As for Frontkn, I am still holding on to the stock. But it is no longer a flying saucer stock.

Feeling bored but I do see a glimmer of hope for the stock in the upcoming August qtr results! 

See the big volumes? At least a couple of times a week, Frontkn will be in the top 10 - 20 most active volume counters. 

This is a sign that the big fish is still swimming around showing his hand.

Good riddance July, welcoming August! 

Commodities Collapsed Just Before The Last Stock Market Crash – So Guess What Is Happening Right Now?

If we were going to see a stock market crash in the United States in the fall of 2015 (to use a hypothetical example), we would expect to see commodity prices begin to crash a few months ahead of time.  This is precisely what happened just before the great financial crisis of 2008, and we are watching the exact same thing happen again right now.  On Wednesday, commodities got absolutely pummeled, and at this point the Bloomberg Commodity Index is down a whopping 26 percent over the past twelve months.  When global economic activity slows down, demand for raw materials sinks and prices drop.  So important global commodities such as copper, iron ore, aluminum, zinc, nickel, lead, tin and lumber are all considered to be key “leading indicators” that can tell us a lot about where things are heading next.  And what they are telling us right now is that we are rapidly approaching a global economic meltdown.

If the global economy was actually healthy and expanding, the demand for commodities would be increasing and that would tend to drive prices up.  But instead, prices continue to go down.

The Bloomberg Commodity Index just hit a brand new 13-year low.  That means that global commodity prices are already lower than they were during the worst moments of the last financial crisis…

The commodities rout that’s pushed prices to a 13-year low pulled some of the biggest mining and energy companies below levels seen during the financial crisis.

The FTSE 350 Mining Index plunged as much as 4.9 percent to the lowest since 2009 on Wednesday, with BHP Billiton Ltd. and Anglo American Plc leading declines. Gold and copper are near the lowest in at least five years, while crude oil retreated to $50 a barrel.

“This commodity bear market is like a train wreck in slow motion,” said Andy Pfaff, the chief investment officer for commodities at MitonOptimal in Cape Town. “It has a lot of momentum and doesn’t come to a sudden stop.”

Commodity prices have not been this low since April 2002.  According to Bloomberg, some of the commodities being hit the hardest include soybean oil, copper, zinc and gasoline.  And this commodity crash is already having a dramatic impact on some of the biggest commodity-producing nations on the globe.  Just consider what Gerald Celente recently told Eric King…

We now see that the Australian dollar is at a six-year low against the U.S. dollar. What are Australia’s biggest exports? How about iron-ore and other metals.

If we look at Canada, their currency is also now at a six-year low vs the U.S. dollar. Well, Canada is a big oil exporter, particularly some tar sands oil, which is expensive to produce.

We also now have the Brazilian real at a 10-year low vs the U.S. dollar. Why? Because it’s a natural resource rich country and they don’t have a strong market to sell their natural resources to.

Meanwhile, the Indian rupee is at a 17-year low vs the U.S. dollar. This is because manufacturing is slowing down and there is less development. If the Americans aren’t buying, the Indians, the Chinese, the Vietnamese — they’re not making things.

All of this is so, so similar to what we experienced in the run up to the financial crisis of 2008.  Just a couple of days ago, I talked about how the U.S. dollar got really strong just prior to the last stock market crash.  The same patterns keep playing out over and over, and yet most in the mainstream media refuse to see what is happening.

Something else that happened just a few months before the last stock market crash was a collapse of the junk bond market.

Guess what?

That is starting to happen again too.  Just check out this chart.

I know that I must sound like a broken record.  But I think that it is extremely important to document these things.  When the next financial collapse takes place, virtually everyone in the mainstream media will be talking about what a “surprise” it is.

But for those that have been paying attention, it won’t be much of a “surprise” at all.

When the stock market does crash, how far might it fall?

During a recent appearance on CNBC, Marc Faber suggested that it could decline by up to 40 percent…

The U.S. stock market could “easily” drop 20 percent to 40 percent, closely followed contrarian Marc Faber said Wednesday—citing a host of factors including the growing list of companies trading below their 200-day moving average.

In recent days, “there were [also] more declining than advancing stocks, and the list of 12-month new lows was very high on Friday,” the publisher of The Gloom, Boom & Doom Report told CNBC’s “Squawk Box.”

“It shows you a lot of stocks are already declining.”

Others, including myself, believe that what we are going to experience is going to be even worse than that.

We live in such a fast-paced world, and most of us don’t have the patience to wait for long-term trends to play out.

If the stock market is not crashing today, to most people that means that everything must be fine.

But once it has crashed, everyone is going to be complaining that they weren’t warned in advance about what was coming and everyone will be complaining that nobody ever fixed the things that caused the exact same problems the last time around.

Personally, I am trying very hard to make sure that nobody can accuse me of not sounding the alarm about the storm that is on the horizon.

The world has never been in more debt, our “too big to fail” banks have never been more reckless, and global financial markets have never been more primed for a collapse.

Amazingly, there are still a lot of “experts” out there that insist that everything is going to be okay somehow.

Of course many of those exact same “experts” were telling us the same thing just before the stock market crashed in 2008 too.

A great financial shaking has already begun around the world, and it will hit U.S. financial markets very soon.

I hope that you are getting ready while you still can.

Source: http://theeconomiccollapseblog.com/archives/commodities-collapsed-just-before-the-last-stock-market-crash-so-guess-what-is-happening-right-now

Everything to worry about China stock market

I believe things will get worse in the coming days.

Artificially boosting the stock market will not stop the rot as the Chinese investors found out to their dismay yesterday - China market tumbled 8.5%, calling into question Beijing market rescue effort.

I'm just a layman in China market but I suppose when the stock market rebounded sharply after the initial 30% slide, those investors who did not get the chance to sell earlier gratefully just did it and this just snowballed into a collapse. 

How sad.

Earlier there was an article I put up in this blog saying that the Chinese regulators were using the wrong ways by forcing the listed companies and stock-brokers to artificially support the sagging market.

When that support waned or stopped, that is what the rumors said yesterday, the market tanked. 

According to the CNBC data I saw, the Shanghai Composite Index (SSEC) on the Shanghai stock exchange this current drop lowest point is 3,421 on 8/7/2015 which I think is the temporary chart support at the moment. 

I personally think there is no way this support will hold.

When this happens there will be another round of panic among Chinese investors. I think they are not used to this type of volatility as most are newbies.

BBC news describe the mayhem in their report here.

The meltdown has affected the sentiment in KLSE but I'm not too sure that it's all due to China, world economy, drop in commodities prices or due to our own internal problems like 1MDB.

Maybe its' a bit of everything.

No fool-proof way to invest

            Gerald AmbroseManaging director of Aberdeen Asset Management Sdn Bhd

Fund manager Ambrose says skills are gained from benefit of hindsight

WITH the increasingly pessimistic outlook for the world economy weighing heavily on global financial markets, what is an investor to do? Unfortunately, there is no fool-proof way to invest, and more often than not, skills for successful investing are gained from the benefit of hindsight, says seasoned fund manager Gerald Ambrose.

The managing director of Aberdeen Asset Management Sdn Bhd can attest to this. Relating his personal experience, he recalls missing out on the London property boom after having sold his property there a few years before prices peaked.

On a more formal front, he recollects that Aberdeen had appeared to be on the losing end when it did not go big into the dot-com boom in the 1990s. But in retrospect, it was spared when the euphoria fizzled out for the tech sector.

“There is no right or wrong rule in investing. There is also no one-size-fits-all approach and I have friends who have reaped good returns from investing in alternatives such as wine and art,” quips the affable fund manager.

However, some basic principles remain, like spreading your investments over several areas, he says.

And gold, it would appear, has a small allocation in the portfolio of many a successful investor.

“Many investors who I respect tell me that 10% to 15% of what you have should be invested in gold. This is really not to make more money, but as an insurance policy, given the scenario where unproven economic experiments, such as quantitative easing (QE), are being performed on paper money all over the world.”

He says gold could be one’s only store of wealth if QE efforts do nothing measurable for the real economy and render paper money worthless, However, don’t buy paper certificates entitling you to pieces of gold, but gold itself.

While gold prices are down from their peak of US$1,911 in 2011 on the back of a positive outlook on the US dollar, some think it has not lost its glitter.

At the time of writing, gold was trading at around the US$1,100 an ounce level.

This is because the commodity is seen as much more than a hedge against inflation and a weak dollar. Commodity prices are tanking because much of the world is suffering an economic slowdown, and this is where gold comes in as a safe-haven asset.

“If QE ends badly, currencies might be worth nothing. Gold could be priceless. So above not below US$1000 it is worth having some,” Ambrose says.

The other three main asset classes are equities, bonds and property.

With returns from bonds currently dismal, funds are moving into US Treasury Bills, Malaysian Government Securities and the likes of Japanese government bonds for the same reasons as investing in gold. They are all seen as safe-haven investments during economic uncertainty.

Ambrose joined Aberdeen in 2005 after it was selected as the country’s first foreign fund manager to have been awarded a domestic asset management licence. The fund management company is a unit of the UK’s Aberdeen group and has RM13.2bil assets under management locally. Aberdeen currently has US$7.1bil or RM27.01bil invested in Malaysian equities as a group.

In terms of returns, Ambrose says it has beaten the benchmark – the MSCI Malaysian equity index – by 3% on a three-year rolling average since it started a Malaysian country fund in 1997.

While the Malaysian chapter is focused on equities, Aberdeen has a network covering equities, fixed-income instruments and property globally.

As for equities, Ambrose subscribes to Aberdeen’s bottom-up approach. This is basically looking at individual companies rather than the industry in which that company operates or the economy as a whole.

On what to look out for in stock-picking, he says one factor is whether the company has a business plan that will provide profits in eight to ten years’ time. And it would be better if its business model had a competitive advantage over others. “Make sure the cash flow and balance sheet can fund its growth, and ideally, it should have some spare cash for dividends. If you have a stock and don’t sell it, the only benefit is the dividend you get.”

Liquidity in the system

Other things that matter is the management of the company; whether they understand what a shareholder is, and in the case of fixed income, whether the borrower understands the obligation of the coupon of its debts.

Sustainable investing is also playing a bigger role. “If you buy a stock that factors in environmental, social and corporate governance (ESG) issues into investment decisions, then you will find their prices going up.”

Taking a leaf from investment guru Peter Lynch, he advises investors to research before making an investment decision, as otherwise, it would be akin to playing poker without looking at the cards.

Macro-economy wise, he believes the QE programmes taking place around the world “would end up in tears and be bad for the capital markets.”

The bad news, he says, has yet to be fully discounted by the market and this is a function of ample liquidity in the system.

“Many stock markets, including Malaysia, are still looking far from cheap, going by adjusted price earnings charts over a ten-year period,” says Ambrose, who thinks that the Malaysian market may see adjustments to accommodate the current economic and political situation.

Because of the weaker ringgit, many Government-linked companies are reluctant to invest overseas and an unintended consequence of this is that they are crowding out the market more than before. This has made the local stock market more protected than others, and one reason why prices have not discovered their proper value, However, he contends that the situation is not as bad as it was during the financial crisis in 1997. Based on international reserves, the capital outflows had been largely from the capital markets. Malaysia’s terms of trade – exports minus imports – have remained quite resilient despite the weak ringgit, notes Ambrose.

On the FTSE Bursa Malaysia KL Composite Index which is trading at around the 1,729-point level, he says the company does not have a view on the index’s year-end target as Aberdeen does not follow trends. However, he concedes that the firm does not see triggers for a major bull run.

“Still, there are many good companies in Malaysia which are well-managed and have good cash flows, but to find them at a price that gives attractive upside is the difficult bit.”

Since the oil price decline in September, he says the fund has picked up a number of oil and gas (O&G) stocks which have dropped to valuations that it felt had genuine upside. It has added a couple of blue chips. Its current poftfolio has 45 listed companies on Bursa Malaysia.

Ambrose believes the O&G stocks it bought can withstand lower oil prices. Dialog Group Bhd, for instance, has done well as it is in fuel bunkering. Bunkering is in because oil is in contango right now. This means that the futures price is higher than the current price, resulting in demand for fuel storage space to store oil for future sales.

As for property, about 15% of Aberdeen’s group assets under management is invested in that sector. It has an Asia private equity division headquartered in Singapore, which has some investments in the Malaysian property sector.

On his personal investments, Ambrose has some European unit trusts invested via Aberdeen. These include a pool of companies listed in Europe like Nestle SA and Unilever, which have the bulk of their sales in emerging markets. He says he had taken advantage to invest in the parent companies of these multinationals, given that the ratings of these stocks have cooled down vis-a-vis their foreign units.

According to Ambrose, back in the 1990s, the price earnings ratio of Nestle SA was about 24 times yielding a return of 3%. Nestle (M) Bhd, meanwhile, was listed at eight times and yielded a return of 7%. The trend has come full circle, with Nestle SA trading at around 13 times to yield 6%, while in Malaysia, the stock is trading at around 29 times and yielding about 4.5%.

Ambrose has also invested in Aberdeen’s frontier market equity fund, which invests in countries like Sri Lanka, Pakistan, Vietnam, Myanmar and Nicaragua. Where alternative investing is concerned, Ambrose says often the best investments are the ones not bought for investment value but as things you like.

“Art in Asia is exciting but undervalued and under-invested. On the other hand, wine has caught up, with more people entering the market, particularly in China and Russia.”

Source: http://www.thestar.com.my/Business/Business-News/2015/07/25/No-foolproof-way-to-invest/?style=biz

Frontkn : Uptrend continuing (part 5)

This is Frontkn 3 months chart as at yesterday 23/7, at 27 cents, which is nothing to shout about as it has been moving between 24.5-28 cents for many weeks.

But look closer and maybe at a longer 6 months period you notice the highs and lows are seeming to come together.

It is no longer forming a base pattern but instead forming a symmetrical triangle pattern, another continuing pattern. Looking at the triangle, the price is already breaking slowly on the UPSIDE. Things are moving at a snail pace because of the big (purchasing) volumes generated of the stock during the rallies over the past few months (see chart below)

This stock I strongly believe, in order to rally, need the big vol as in the past (see vol chart above). Of course, market need to be okay too for these types of stocks.

Cheers!

How the China stock market crash affects Malaysia

China's stock market crash and the country's economic decline will have serious ramifications for Malaysia, which saw its currency remain at pre-Asian Financial Crisis levels yesterday after Shanghai Composite Index dropped another 1.29%, bringing its total losses to over 30% in the last three weeks.

Malaysia saw a third day of losses in both its share market and the ringgit, which fell 0.28% and 0.05% respectively yesterday.

The ringgit is predicted to slump to a low of 4.00 against the U.S. dollar on China's decline by the end of this year, said Hoo Ke Ping, a prominent economic macroanalyst based in Kuala Lumpur.

Some 90 million traders have been selling down their shares and wiping off some US$2.4 trillion of value from Chinese companies , which is seen as being significantly overvalued .

The price to earnings ratio of the Shanghai Composite Index is 23, compared with 12 for the Hong Kong’s Hang Sheng Index, on which many of the same Chinese firms are listed.

The Shenzhen Composite Index, which has seen its value drop by 30%, has an average P/E ratio of 50 .

President Xi Jinping's administration has reacted to the sell down through a series of capital controls, such as getting some 200 China-listed firms halt trading in shares, according to state media.

It has also obtained a pledge from China’s top brokerages to collectively buy at least 120 billion yuan of shares to help steady the market and not sell while the Shanghai Composite Index remains below 4,500 points.

In addition, the China Securities Regulatory Commission has opened an investigation into what it claims is illegal manipulation across markets but even this has been labelled a desperate attempt to direct attention away from the overvaluation of China's stocks.

Analysts say China will not succeed in stemming the decline.
“They will fail,” said Hoo.

Chinese investors trade some US$200 billion worth of shares on the Shanghai and Shenzhen markets everyday, and a proposed $19 billion fund does not look like it will have much of an effect, said Hoo.

“Nothing seems to have worked,” said Li-Gang Liu, chief economist for Greater China at Australia and New Zealand Banking Group Limited Bank in a phone call from Hong Kong.

“It appears that current share prices are still overvalued,” Liu told The Malaysian Reserve.

Liu estimates China's growth for the first quarter of this year to be 6.8%, lower than the People's Republic of China's forecast of 7%, which it revised from an earlier 7.5%.

The main concern for Malaysia is how China’s decline has affected many commodity-producing countries, which rely on the country as a key export market.

China's decline has resulted in a drop in global commodity prices, of which exports form a significant portion of Malaysia's gross domestic product.

“Export-driven economies have seen currency drops in tandem with the decline in commodity prices due to China’s slump in growth,” said Hoo.

Thailand, known as one of the world's biggest exports of rice , has seen the baht decline to 34.00 against the dollar this year from a previous 31.70 high, and Australia has also seen its dollar currency drop to a nine year low against the greenback.

“Already, the halving of China’s growth has wreaked havoc with global commodity markets and has negatively influenced growth in those East Asian economies that are a vital part of China’s manufacturing supply chain,” said Ira Kalish, chief global economist at Deloitte, said in a response to ChinaFile on July 2.

“It could be argued that the imbalances in China’s economy thus represent more of a risk to the global economy than the current and much discussed situation in Greece,” said Kalish.

The country which plays host to the world's biggest population is Malaysia's second biggest export market after Singapore, importing some 12% to 13% of Malaysia's exported goods every year.

Since earlier this year, Malaysia's exports have declined due to falling demand from China.

In 2013, growth in Malaysia-China trade was 12%.

But last year, it was just 2%.

Source: http://www.themalaysianreserve.com/new/story/china-stock-market-crash-seen-dragging-down-ringgit

#Editor comment: This is not the original post title, it has been amended by me to better reflect the article. 

China's stock market is crashing, and the Chinese are trying to do the exact same thing America did in 1929

While attention is focused on Greece, China is having a serious market meltdown.

After exploding earlier in the year because of deregulation, China's benchmark Shanghai Composite has collapsed a crazy 29% since the highs of early June. China's other stock markets have had similarly steep falls.

Bloomberg notes that the crisis is closely mirroring the 1929 Wall Street crash, which led to the Great Depression in the US in the 1930s.

China's government is now also using the same tactics as Wall Street did back then to try to prop up the markets.

Over the weekend China's top stock brokerages pledged that they would collectively buy at least 120 billion yuan (£12.3 billion, $19.3 billion) of shares to help steady the market, with backing from the People's Bank of China.

The central bank is effectively becoming the buyer of last resort, printing money to buy up shares and prop up prices.

In 1929, Wall Street's banks did something similar. JPMorgan and several other top financial firms agreed to pool resources and buy up shares to put a floor under prices. It happened after a drop of about 30% for the Dow Jones Industrial Average.

The effort by the US banking systems had only the briefest of effects on the index, and America was eventually plunged into the Great Depression.

It's too early to tell whether China's latest move will work, despite the insistence of state media. So far it has failed to curb the huge volatility that has been plaguing China's stock markets recently. The Shanghai Composite opened up over 7% and eventually slipped back into the red before ending the day up 2.4%.

Source: http://finance.yahoo.com/news/chinas-stock-market-crashing-chinese-095900183.html

My comments : Folks, will these measures help to stabilize the China market?The danger could actually be China!

Frontkn the Flying saucer stock (part 4)

As I am writing this post @ 11.50 am, Frontkn just moved 26.5 to 27c...from the chart Frontkn  has been forming a double base bottom ...a bullish chart pattern ...see chart above ....and according to this double base theory the stock will be a genuine move up when the resistance/top of this double base at 28.5c is broken with volume...as momentum traders chase the stock ....so short-term traders can buy at 29c ...target 33c (I hope so) ... the caveat is that there must be the big volume to follow the stock and market breath is good...IF NOT ..the chart pattern will fail ...cut loss below 25c support ...Trade at own risk!

Disclaimer: I own some Frontkn shares, bot at 27.5c last week.